Draft Hungary bill seeks to restrict foreign funding that “influences public life”
On 13 May 2025, Hungary’s ruling Fidesz party presented a bill “Transparency of Public Life”, which would empower the Hungarian government to restrict foreign funded organisations, commercial and non-profit, it considers as “a threat to Hungarian sovereignty.
The bill, which is already under discussion in the Hungarian parliament and is scheduled for a final vote during the 10-12 June session, would restrict foreign funded organisations that influence public life and reaffirms our recent call to standing together for philanthropic freedoms.
The bill would include the following provisions:
- Create a list of foreign funded organisations that “influence public life”.The bill would give authority to the Sovereignty Protection Office (SPO) to list organisations that use foreign funding to “influence public life”, which would then be confirmed by government decree.
- Require prior approval for any foreign funding for listed organisations
- Exclusion from domestic funding of 1% scheme for listed organisations
- Domestic Hungarian donors would be required to secure two witnesses to confirm their funding to listed entities is not coming from abroad.
- Tight controls: If a listed entity receives funding from abroad, banks must inform the Tax Office, which can suspend transactions. If a listed entity accepts foreign funding without the permission of the Tax Office, the affected funds must be transferred to the state-managed National Cooperation Fund. The Tax Office would also levy a fine. If the concerned amount is not transferred to the Fund, the fine is not paid or prohibited funds are accepted by the listed entity for a second time, the Tax Office would prohibit the listed entity’s operations “aimed at influencing public life.
- Managers of “excluded organisations” would fall under the category of “politically exposed persons” subjecting them to AML and terrorist financing laws.
- There are only limited appeal options against decisions under the law.
Experts have raised concerns that the draft bill is a clear violation of EU law, including the free movement of capital, the General Data Protection Regulation (GDPR), the right to freedom of expression and association, the right to effective judicial protection, and the right to protection of private life protected under the EU Charter of Fundamental Rights, the European Convention on Human Rights and the International Covenant on Civil and Political Rights.
The draft bill goes far beyond the 2017 Law on the Transparency of Organisations Receiving Foreign Funding, which was found in 2020 to be incompatible with EU law by the Court of Justice of the European Union (CJEU). Philea has co-signed an open letter to EU policymakers to demand immediate action utilising ongoing infringement proceedings and the Article 7 TEU process.
For more information:
- Hungarian Helsinki Committee – unofficial translation of the bill
- Joint Analysis Hungarian Organisations – briefing
- Hungarian Helsinki Committee – press release
- CIVILIZACIO coalition – press release
- ECNL – initial analysis
- Civil Liberties Union for Europe – statement
Contact
